By: Anirban Basu

1
Why Nonprofits Have Never Been More Important
than they will be Tomorrow
On Behalf of
Delmarva Community Services
By Anirban Basu Sage Policy Group, Inc. January
25, 2008
2
Thomas Friedmans Ten Forces that have Flattened
the World

• The fall of the Berlin Wall
• Netscapes IPO
• Work flow software
• Open-source software
• Outsourcing

• Offshoring
• Supply-chaining
• Insourcing
• In-forming
• The steroids (things like wireless, expanding
  storage, etc. that supports the other nine forces)

3
U.S. Value of Exports vs. Imports
Source U.S. Census Bureau
4
U.S. Trade Deficit, January 2001 through November
2007
Source Dismal.com
5
Largest U.S. Trade Deficits by Country, 2006
Source U.S. Census Bureau
6
U.S. Manufacturing Employment, 1944 through 2007
Source Bureau of Labor Statistics
7
Corporate Profits (SAAR), 2001Q1 through 2007Q3
With inventory valuation and capital consumption
adjustments
Source BEA
8
Top 10 CEOs by Total Compensation, 2006
Total compensation is defined as salary and
bonus plus other compensation, including stock
options.
Source Forbes
9
Growth in U.S. Real Personal Income, 1970 through
2006
Source Bureau of Economic Analysis
10
It is a law, as certain as any of the others
named, that men possessed of this peculiar talent
for affairs, under the free play of economic
forces, must, of necessity, soon be in receipt of
more revenue than can be judiciously expended
upon themselves and this law is as beneficial
for the race as the others. Andrew Carnegie,
Wealth (1889).
11
Proportion of Median Income Held by Lowest and
Highest Income Groups in the OECD, 2006
Source Smeeding
12
Top 15 States with the Highest Income Inequality
Source CNN
13
Household Share of Total Income in Maryland
1980, 1990 and 2000
Source Maryland State Data Center
14
Proportion of People without Health Insurance,
Maryland vs. Surrounding States, 2006
Source U.S. Census Bureau
15
Maryland Nonprofits by Service Area
501 (c)(3) nonprofits only religious,
educational, charitable, scientific, literary,
testing for public safety, to foster
national/international amateur sports competition
or prevention of cruelty to children or animals
organizations.
Source Maryland Association of Nonprofits
Nonprofits by the Numbers, 2007
16
What We are Not Doing
17
U.S. Share of All U.S. Distributed Patents
1984 2006
The country of origin of a patent is determined
by the residence of the first-named inventor.
Source U.S. Patent and Trademark Office
18
U.S. Federal Basic RD Investment Expenditures,
1976 2007
Data for 2006 and 2007 are estimates
Source American Association for the Advancement
of Science
19
12th Grade National Average Scores, TIMSS
Mathematics General Knowledge, 1999
Source National Center for Education Statistics,
Pursuing Excellence.
20
12th Grade National Average Scores by Gender,
TIMSS Mathematics General Knowledge, 1999
Source National Center for Education Statistics,
Pursuing Excellence.
21
8th Grade National Average Scores, TIMSS
Mathematics General Knowledge, 2003
Source National Center for Education Statistics,
Pursuing Excellence.
22
4th Grade National Average Scores, TIMSS
Mathematics General Knowledge, 2003
Source National Center for Education Statistics,
Pursuing Excellence.
23
U.S. Male Labor Force Participation Rate by Age
Group
Source Bureau of Labor Statistics
24
Male Labor Force Participation in Maryland
1970 through 2030
Data for 2010 2030 are projections
Source Maryland Department of Planning
25
Male Labor Force Participation in Dorchester
County 1970 through 2030
Data for 2010 2030 are projections
Source Maryland Department of Planning
26
Median Home Price in Maryland,
1996 through 2007
Source Maryland Association of Realtors
27
Median Home Price in Dorchester County,
2000 through 2007
Source Maryland Association of Realtors
28
Top 10 States by Average Travel Time to Work, 2006
Travel time to work is for those 16 years and
over who do not work from home
Source U.S. Census Bureau, American Community
Survey 2006
29
Homeownership Rates, 2006Maryland vs. Nearby
States
Source Census Bureau
30
What Others are Doing
31
Number of Engineering and Information Technology
Bachelor Degrees Awarded in 2004
Includes Bachelor degrees, Associate degrees in
the U.S., short-cycle degrees in China, and
three-year diplomas in India.
Source Duke University, Framing the Engineering
Outsourcing Debate, December 2005
32
U.S. Foreign-Born Share of Employment by
Education among Scientists and Engineers,
1996-2002
Source National Science Foundation
33
Math and Science Demographics are Shifting

• Twenty-five percent of all college-educated U.S.
  workers in Science and Engineering (SE)
  occupations in 2003 were foreign-born
• Forty percent of U.S. doctorate degree holders in
  SE occupations in 2003 were foreign-born and
• Among all U.S. doctorate holders in 2003, a
  majority in computer science (57), electrical
  engineering (57), civil engineering (54) and
  mechanical engineering (52) were foreign-born.

Source National Science Foundation
34
Infrastructure Investment

• According to Chinas Vice President of the
  Ministry of Construction, Chinas aggregate
  investment on city infrastructure in 2000 was 10
  times higher than in 1990
• In 1990, the infrastructure investment-to-GDP
  ratio in China was 6 percent. By 2005, this had
  increased to 13 percent. During the same period,
  public infrastructure in the United States was
  around 4.5 percent of GDP.

Source University of Hong Kong Peoples Daily
35
Shanghai, China
Kuala Lumpur, Malaysia
36
Seoul, S. Korea
Hong Kong, China
37
Mumbai, India
Taipei, Taiwan
38
Dubai, United Arab Emirates
Singapore
39
Maryland Nonprofits Profile
Source Maryland Association of Nonprofits
Nonprofits by the Numbers, 2007
40
Conclusions

• The demand for nonprofit services continues to
  expand, just as economic theory predicts it
  would
• Men increasingly need support and
• Nonprofits both add to government revenues and
  save government money.

41
Thank You

• You can always reach me at abasu_at_sagepolicy.com
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